Okla. Admin. Code § 165:50-3-1

Current through Vol. 42, No. 7, December 16, 2024

Section 165:50-3-1 - Contents of adjustment clauses

This Chapter shall apply in the design of all fuel, purchased gas, and purchased power adjustment clauses:

(1) For the purpose of determining fuel or gas costs, the price paid for the fuel or gas shall be computed at the actual cost of fuel or gas purchased from nonaffiliated persons, firms, and corporations; and the actual cost of the production of fuel owned by the public utility or received from affiliated persons, firms or corporations, and in the case of gas, the fair field price for gas owned by the public utility or received from affiliated persons, firms, or corporations.

(2) The cost of fuel or gas shall be the price paid at the point of delivery into the utility system. In the event the transportation is performed by an affiliated person, firm, or corporation as defined in 165:50-1-2, which is not subject to the regulatory jurisdiction of the Commission, a regulatory agency of another state having jurisdiction, or the Federal Energy Regulatory Commission or successor agency, the charges made for transportation shall be, if allowed at all, only such as the Commission finds fair, just, and reasonable, for purposes of this Chapter. Transportation charges approved by this Commission, a regulatory agency of another state having jurisdiction, or by the Federal Energy Regulatory Commission, or successor agency shall be included for purposes of this Chapter, if allowed by the Commission. In instances where the affiliate's approved transportation charges are adjustable, the Commission may evaluate the reasonableness of the rate paid in terms of the maximum and minimum allowed by the adjustable charges, taking into account all of the terms and conditions of, and the circumstances surrounding, the transportation service being provided. The proposed adjustment charge shall not include the cost of transportation beyond its point of delivery into that portion of the utility system regulated by the Commission unless there is presented to the Commission and the Commission is persuaded by reliable evidence which clearly points to the conclusion that failure to do so will substantially threaten the ability of the utility to earn a reasonable rate of return.

(3) The amount of electric energy produced by hydro-electric generating plants and purchased by the public utility proposing the adjustment charge shall be deducted from the amount of electric energy to which any fuel cost applies.

(4) The actual efficiency or heat rate of electric public utilities shall be utilized and line losses shall be considered only if reliable evidence clearly points to the conclusion that failure to do so will substantially threaten the ability of the utility to earn a reasonable rate of return.

(5) Fuel removed from stockpiles or gas removed from storage shall be taken into consideration on the basis of the last-in first-out method of inventory accounting.

(6) No estimated fuel adjustment shall be allowed.

(7) Each public utility authorized by the Commission to recover the cost of fuel, purchased gas, or purchased power shall adhere to the standard fuel, purchased gas, or purchased power adjustment provisions of this Chapter unless the Commission determines after an appropriate evidentiary hearing that the public interest is better served by permitting the utility to file a special tariff for the recovery of costs addressed in this Chapter.

Okla. Admin. Code § 165:50-3-1

Amended at 12 Ok Reg 2139, eff 7-1-95